A companys weighted average cost of capital is 12.6% per year. A project requires an investment of $75,000 today and it is expected to generate after-tax cash flows of $30,000 at the end of year 1, $45,000 at the end of year 2, $60,000 at the end of year 3, and $75,000 at the end of year 4. What is the projects payback period?

2

A companys weighted average cost of capital is 10.7% per year. A project requires an investment of $1,300 today and it is expected to generate after-tax cash flows of $450 per year for the next four years. What is the projects internal rate of return?